Preferred stock has some distinctly different characteristics from common stock.Which of the characteristics below is not related to preferred stock?
A)Its dividends may be paid at a fixed rate.
B)It has a higher priority for the distribution of assets than common stock.
C)It has a higher priority for the payment of dividends than common stock.
D)It generally has voting rights.

Question

Quizplus · Accepted Answer

Preferred stock generally has no voting rights,in contrast to common stock which usually does.Its dividends are typically paid at a fixed rate and preferred stock carries a priority over common stock for the payment of dividends and distribution of assets at liquidation.

Preferred Stock Has Some Distinctly Different Characteristics from Common Stock